According to commercial property tracker, Reis Inc., the average U.S. rent has grown by 14% since 2010. On average, the price that most U.S. tenants pay is $1,124 per month. And this year, things are going to get worse…a lot worse.
While last year saw an increase in rent of 3.6%, this year will see an increase of 3.3% - which, though it is less than last year, it continues the trend of the ever-rising rental costs.
“The only relief in sight is rents in the hottest markets are going to go up at a slower pace, but they're still going to go up," said Hessam Nadji, chief strategy officer at a commercial real estate services firm, Marcus & Millichap.
The cause of this growth in prices could link back to millennials. Most of the young adults in this age group are starting to get better jobs, venture out of their parents’ homes and begin apartment hunting.
While this is great news for the economy, it also causes a shortage in rental properties, which causes the prices to rise.